Economics research topics in price gouging from odd-even rationing to guilt and shame

As I point out in the introduction, many economists think price gouging is too simple to be worth studying. After all, it is just a kind of price cap, and we know how price caps work. My response is that “too simple to be worth studying” is losing the policy battle.

As a bonus for Knowledge Problem readers only, here is a hot, hot, hot behavioral economics research topic as well:

11. Guilt, shame, trust and fairness in pricing after disasters

Economists are increasingly realizing that it takes much more to make markets work than formal rules and freely moving prices. A host of issues sometimes styled as “culture” or “informal institutions” are also critical in getting things to work. (An aside: I’m looking forward to seeing Virgil Storr’s new book, Understanding the Culture of Markets.)

Guilt, shame, and betrayal are joining reputation as social-psychological factors important to economic activity and respectable enough for economists to work on. Does shaming “price gouging” behavior work to stop post-disaster price increases? Does shaming price gougers encourage or discourage pro-social interaction after a disaster? (I.e. do merchants work harder to bring goods to market yet keep prices low, or do merchants allow shelves to go bare and avoid engaging in costly efforts to resupply?)